First National 1870 recently achieved the “U.S. Small Business Administration Preferred Lender” designation, giving the bank the ability to provide small business loans to more companies and, in many cases, faster than before.
Under the Preferred Lenders Program (PLP), high-volume SBA lenders such as First National 1870 are delegated loan approval as well as closing and most servicing and liquidation authority, enabling them to make loan decisions more rapidly. The SBA assigns a loan number instantaneously for approved PLP loans submitted by participating lenders. To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures.
The SBA, under its 7(a) Loan Guaranty Program, can guarantee loans up to $5 million. Loans are available for most business purposes, such as the purchase of commercial real estate, equipment, and inventory as well as for short-term working capital. The interest rate normally will not exceed 2.75 over the prime lending rate. Maturities are up to 10 years for working capital and up to 25 years for fixed assets.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. It delivers services to people through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.